Divine Healthcare Taps Muktinath Capital as Issue Manager for Landmark IPO

Divine Healthcare Limited, a prominent pharmaceutical manufacturer in Nepal, has taken a significant step towards its public listing by officially appointing Muktinath Capital Limited as the issue manager for its upcoming Initial Public Offering (IPO). This strategic partnership marks a crucial milestone for Divine Healthcare as it prepares to offer ordinary shares to the general public, aiming to raise capital for ambitious expansion and development initiatives.

The formal agreement was cemented during a signing ceremony held at Muktinath Capital's office. The pact was signed by Mr. Yubaraj Shrestha, Chairman of Divine Healthcare, and Mr. Kabindra Bikram Dhwaj Joshi, CEO of Muktinath Capital. This collaboration brings together a growing pharmaceutical entity with a reputable financial institution, setting the stage for a well-managed and successful public issuance.

Divine Healthcare plans to issue 20% of its paid-up capital as ordinary shares to the public. This move is expected to not only broaden the company's ownership base but also provide an opportunity for retail and institutional investors to participate in the growth story of a domestic pharmaceutical player. The pharmaceutical sector in Nepal has been experiencing robust growth, driven by increasing healthcare awareness, a rising population, and a growing demand for quality medicines. Companies like Divine Healthcare are at the forefront of meeting these demands, contributing significantly to the nation's healthcare infrastructure.

Established in 2017, Divine Healthcare has rapidly carved a niche for itself in the Nepali pharmaceutical landscape. Headquartered in Bharatpur Metropolitan City-16, Chitwan, the company operates a state-of-the-art manufacturing facility. Currently, Divine Healthcare boasts a diverse portfolio, producing and distributing 67 different types of medicines across various therapeutic categories. Its commitment to quality and accessibility is further underscored by an extensive distribution network comprising over 125 distributors spread throughout the country, ensuring its products reach a wide patient base.

The capital raised through this IPO is earmarked for several critical strategic initiatives designed to propel Divine Healthcare into its next phase of growth. A significant portion of the funds will be allocated towards expanding production technology, which is vital for enhancing manufacturing capacity and efficiency. Furthermore, the company plans to invest heavily in the development of new medicines, addressing unmet medical needs and diversifying its product offerings. Improvements to existing products will also be a key focus, ensuring that Divine Healthcare continues to deliver high-quality and effective pharmaceutical solutions. Crucially, strengthening research and development (R&D) activities is a core objective, positioning the company to innovate and remain competitive in a dynamic market.

Muktinath Capital Limited, as the appointed issue manager, will play a pivotal role in guiding Divine Healthcare through the intricate process of the IPO. Their responsibilities will include preparing the offer document, ensuring compliance with regulatory requirements set by the Securities Board of Nepal (SEBON), managing the application and allotment process, and facilitating the listing of shares on the Nepal Stock Exchange (NEPSE). Given Muktinath Capital's expertise and track record in managing public issues, investors can anticipate a transparent and efficient IPO process.

This upcoming IPO by Divine Healthcare is poised to be an attractive proposition for investors looking to tap into Nepal's burgeoning healthcare sector. With a clear vision for expansion, a strong product portfolio, and a commitment to innovation, Divine Healthcare aims to not only enhance its market position but also contribute significantly to the availability of quality healthcare products in Nepal. The public offering represents a chance for investors to become part of a company dedicated to health and growth.